Why you should consider buying completed / TOP condos

Purchasing TOP condos does have its merits

If you’re interested in getting a condominium in Singapore, you’ve got 3 options open to you:

Resale condos – condominiums that have already been constructed, and are currently owned or occupied:
New launch (or prelaunch) condos – condominiums that are slated to be, or in the process of being, constructed; and
TOP condos – condominiums that are close to receiving its Temporary Occupation Permit (“TOP”).

Each of these types has their own advantages and disadvantages, but we’re here to tell you why you should consider TOP condos for your next purchase.

TOP condos are in prime condition

The beauty of a brand new unit is that all the fixtures and fittings are in prime condition.

This means not having to spend precious time (not to mention money!) fixing leaking taps or replacing loose tiles.

Besides the practical benefits, you have the less tangible (but no less important) peace of mind that comes with knowing that the tub you’re soaking in isn’t coated with years of skin cells from previous owners.

Capital Appreciation

As the first owner of the property, you’re best-placed to reap maximum capital appreciation off your unit.

There are two reasons for this.

First, buying direct from the developer means you’re cutting out the middleman, and getting the apartment at what you might call the ‘wholesale’ price. When you’re ready to sell, this will give you the upper hand against other sellers who had bought their apartment second or third-hand, as you can afford to price your apartment lower than what they’re asking, yet still maintain a healthy profit line.

Second, since depreciation only begins on completion, there’s virtually no asset depreciation here. So if you’re buying a condominium for investment purposes, a TOP condominium is a better option than the more aged resale condominium.

Just be sure to wait at least 4 years from your purchase to avoid having to pay any Seller’s Stamp Duty on your sale.

Free Repairs!

Expanding on the earlier point of the unit being in prime condition, a TOP condominium also comes with a defects liability period (usually about 1 year from TOP) during which time the developer is contractually obligated to repair any damage or defect in the unit.

The best part? Repairs are done totally at the developer’s expense.

Greater Choice of Units

Developers usually make the majority of their sales at their launch, i.e. before construction has even started on the units.

However, and especially in today’s slower market, there’s still a sizeable number of units available as the project nears TOP for potential buyers to choose from.

This means buyers have a greater chance of securing prime units, especially compared to resale condominiums where they’re constrained to choosing between whatever units current owners are putting on the market.

Discounts and Freebies

This one will appeal to all the bargain-hunters out there (so basically about 99 percent of Singaporeans).

Developers today are courting buyers aggressively with great discounts and freebies in the hopes of enticing them to purchase a unit. While the lion’s share of these goodies are made available earlier during the launch, there are still some pretty good deals to be found as the unit nears TOP.

If you’re curious to find out more about these deals, be sure to check out our previous articles here, here, here and here.

Why Not Go For a New Launch Condominium Then?

It’s fair to say that pretty much all the factors listed above apply equally, if not more, to new launch condominiums.

So what’s the difference between the two, and which one should you go for?

Well, it really depends on what’s right for you and your situation. Here’s a table of some of the key differences between TOP and new launch condominiums that might help you out.

	New launch condos	TOP condos
Payments	Since new launch condominiums aren’t built yet, payments are made according to a Progressive Payment Scheme (instalments of 5 – 10 percent every 6 months). This means lower monthly payment obligations on your bank loan.	Much like buying a resale condominium, you’ll be required to pay the entire purchase price.
Waiting Time	You’ll have to wait between 1 – 3 years for your unit to be ready.	Depending on how far along construction is, you can be in possession of your unit in a matter of months.
Uncertainty	You’ll have to rely on floorplans, and try to imagine what the flat will eventually look like. There’s a danger that you may not like the end result once it’s been constructed.	There will usually be a show flat available within the building so you can have an idea of how your unit will look, so there’s minimal guesswork involved.

Convinced that TOP condos are the way to go? Be sure to check out 99.co’s handy filters which help, amongst other things, filter condominiums according to TOP date.

About Zareen B.

Looking to sell your property?

Whether your HDB apartment is reaching the end of its Minimum Occupation Period (MOP) or your condo has crossed its Seller Stamp Duty (SSD) window, it is always good to know how much you can potentially gain if you were to list and sell your property. Not only that, you’ll also need to know whether your gains would allow you to right-size to the dream home in the neighbourhood you and your family have been eyeing.

One easy way is to send us a request for a credible and trusted property consultant to reach out to you.

Alternatively, you can jump onto 99.co’s Property Value Tool to get an estimate for free.

If you’re looking for your dream home, be it as a first-time or seasoned homebuyer or seller – say, to upgrade or right-size – you will find it on Singapore’s fastest-growing property portal 99.co.

Meanwhile, if you have an interesting property-related story to share with us, drop us a message here — and we’ll review it and get back to you.

Join our social media communities!